From the Sector

Beijing - Tencent Holdings Limited (“Tencent”) (00700.HK), JD.com, Inc. (“JD.com”) (NASDAQ:JD), and Vipshop Holdings Limited (“Vipshop”) (NYSE:VIPS), today jointly announced that Tencent, a leading provider of internet value-added services in China, and JD.com, China’s largest retailer, have entered into definitive agreements with Vipshop, a leading online discount retailer for brands in China, such that Tencent and JD.com will invest an aggregate amount of approximately US$863 million in cash in Vipshop at the closing of the transaction.

 

Pursuant to the share subscription agreement, Tencent and JD.com will subscribe for newly issued Class A ordinary shares of Vipshop in the amount of approximately US$604 million and approximately US$259 million, respectively. The purchase price will be US$65.40 per Class A ordinary share, which is equivalent to US$13.08 per American Depositary Share (“ADS”) of Vipshop, five of which represent one Class A ordinary share. The purchase price represents a 55% premium over the closing price of the ADSs as of the last trading day on December 15, 2017.

The transaction is expected to close in the near future, subject to customary closing conditions.  Upon the closing, Tencent and JD.com will beneficially own, taking into account any existing holding, approximately 7% and 5.5%, respectively, of Vipshop’s total issued shares. The Class A ordinary shares issued to Tencent and JD.com will be subject to a two-year lock up restriction. Tencent and JD.com will have the right to appoint a director and an observer, respectively, to Vipshop’s board of directors during the two-year lockup period. After the end of the lock-up period, for so long as Tencent and JD.com hold approximately 12% and 8%, respectively, of Vipshop’s total issued shares, or otherwise by mutual agreement with Vipshop, they will maintain director and board observer rights.

Concurrently with the entry of the share subscription agreement, Tencent and JD.com have entered into business cooperation agreements with Vipshop, effective upon closing, establishing a cooperative relationship among Tencent, JD.com and Vipshop. Under these agreements, Tencent will grant Vipshop an entry on the interface of Weixin Wallet enabling Vipshop to utilize traffic from Tencent’s Weixin platform, and JD.com will grant Vipshop entries on both the main page of JD.com’s mobile application and the main page of its Weixin Discovery shopping entry, and will assist Vipshop in achieving certain GMV targets through JD.com’s platform.   

“I am truly delighted about Vipshop's new strategic cooperation relationships with Tencent and JD.com,” said Mr. Eric Ya Shen, Vipshop’s Co-founder, Chairman of the Board of Directors and Chief Executive Officer. “This undoubtedly is an important event for Vipshop as well as China's e-commerce and internet industries. We, together with Tencent and JD.com, will leverage our respective strengths to form a strategic cooperative alliance aiming to achieve a deep, win-win cooperation and to benefit internet users and consumers. We will develop a holistic cooperation with Tencent on the Weixin platform and expand our strategic alliance with Tencent into more and broader areas.  We will explore win-win opportunities in multiple areas with JD.com, including establishing a strategic alliance in collaboration with brand suppliers, and an on-line traffic alliance. We will continue to operate as an independent e-commerce platform and further deepen and enhance our leading e-commerce capabilities in fashion (including apparel, shoes, bags and accessories) and cosmetics categories as well as our strong female user base, thereby offering higher value and better user experience to our customers.”

“The strength of Vipshop’s flash sale and apparel businesses, as well as its outstanding management team, create clear and strong synergies with us,” said Richard Liu, Chairman and CEO of JD.com. “This partnership will further extend the strong inroads that we have made with female shoppers, and will expand the breadth and reach of our fashion business. We continue to add the top-notch partners to complement JD.com’s core strengths, ensuring that JD and our partners provide the best customer experience for every shopping need.”

Martin Lau, President of Tencent Holdings, said, “We are pleased to become strategic investor in and partner with Vipshop. We look forward to providing Vipshop with our audiences, marketing solutions, and payment support to help the company provide branded apparel and other product categories to China’s rising middle class. We already see substantial demand from our users to discover, discuss and purchase branded apparel in our applications, and we believe that connecting our users more deeply to products on Vipshop’s platform will enrich their online experiences while benefiting Vipshop. We are proud of the role our resources such as marketing technology, payments handling, and machine learning play in facilitating a healthy and diverse retail ecosystem, online and offline.” 

About JD.com, Inc.

JD.com is both the largest e-commerce company in China, and the largest Chinese retailer, by revenue. The company strives to offer consumers the best online shopping experience. Through its user-friendly website, native mobile apps, and WeChat and Mobile QQ entry points, JD offers consumers a superior shopping experience. The company has the largest fulfillment infrastructure of any e-commerce company in China. As of September 30, 2017, JD.com operated 7 fulfillment centers and 405 warehouses covering 2,830 counties and districts across China, staffed by its own employees. JD.com is a member of the NASDAQ100 and a Fortune Global 500 company.

About Vipshop Holdings Limited

Vipshop Holdings Limited is a leading online discount retailer for brands in China. Vipshop offers high quality and popular branded products to consumers throughout China at a significant discount to retail prices. Since it was founded in August 2008, the Company has rapidly built a sizeable and growing base of customers and brand partners. For more information, please visit www.vip.com.

About Tencent Holdings Limited

Tencent uses technology to enrich the lives of Internet users. Our social products Weixin and QQ link our users to a rich digital content catalogue including games, video, music and books. Our proprietary targeting technology helps advertisers reach out to hundreds of millions of consumers in China. Our infrastructure services including payment, security, cloud and artificial intelligence create differentiated offerings and support our partners’ business growth. Tencent invests heavily in people and innovation, enabling us to evolve with the Internet. Tencent was founded in Shenzhen, China, in 1998. Shares of Tencent (00700.hk) are traded on the Main Board of the Stock Exchange of Hong Kong.

 

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, statements regarding the expected closing of the transactions and the quotations from management in this announcement are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to, those included in JD.com’s and Vipshop’s filings with the SEC and in Tencent’s filings with the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and none of Tencent, JD.com or Vipshop undertake any duty to update such information, except as required under applicable law.

• Revenue up 9.4 percent to EUR 1,726.6 mn
• EBITDA improvement of 23.9 percent to EUR 397.1 mn
• Retail bond of EUR 120 mn redeemed – Lenzing with net liquidity as at end of September
• State-of-the-art application innovation center opened in Hong Kong

Lenzing – The Lenzing Group generated a substantial increase in revenue and earnings in the first nine months of the 2017 financial year compared to the prior-year period. The company is continuing the implementation of its Group strategy sCore TEN in order to further expand the offering of specialty fibers and be even closer to its customers and business partners.

Consolidated revenue climbed 9.4 percent year-on-year to EUR 1,726.6 mn. This increase is mainly attributable to higher prices for all three fiber generations. Consolidated earnings before tax, depreciation and amortization (EBITDA) rose 23.9 percent to EUR 397.1 mn, corresponding to an EBITDA margin of 23 percent, up from 20.3 percent in the prior-year period. Earnings before interest and tax (EBIT) increased by 34.6 percent to EUR 298.4 mn, resulting in a higher EBIT margin of 17.3 percent (Q1-3 2016: 14 percent). The profit for the period improved by 35.3 percent to EUR 219.3 mn, and earnings per share rose 36 percent to EUR 8.12 per share. In September Lenzing redeemed the retail bond of EUR 120 mn. At the end of the reporting period the Group had net liquidity of EUR 16.9 mn.

“In the first three quarters of 2017, we successfully captured value in a very positive market environment and we continue to implement the sCore TEN strategy with great discipline. The opening of our new application innovation center in Hong Kong is an important step to boost our regional innovation capabilities. We were particularly proud to launch TENCELTM Luxe as a sign of Lenzing’s ongoing commitment to innovation and sustainability”, states Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “After three excellent quarters we are confident to deliver substantially better operating results in 2017 compared to 2016, but at the same time we do expect more headwinds in 2018.”

Focus on customer intimacy

In September 2017, the Lenzing Group opened a new application innovation center (AIC) in Hong Kong, thus setting a further milestone in strengthening its innovation offering to all partners along the value chain. New applications for Lenzing fibers will be developed and tested at the new facility, among them applications for recent innovations such as the TENCELTM Luxe branded lyocell filament, the RefibraTM branded lyocell fiber and the EcoVeroTM branded viscose fiber.

Furthermore, new sales and marketing offices were opened in Turkey and South Korea in the first half of 2017. The direct contact to customers and well-equipped showrooms featuring products made of LenzingTM fibers serve as the basis for providing even better customer support.

Investment program in progress

The Lenzing Group aims to increase the share of specialty fibers as a percentage of revenue to 50 percent by 2020. Following the capacity expansion initiatives in Heiligenkreuz (Austria) and Mobile, Alabama (USA) which are both underway, Lenzing announced its intention to construct the next plant to produce TENCEL® fibers in Thailand.

A new era of sustainable production

In October 2017, the Lenzing Group presented a new product, TENCELTM Luxe, at an exclusive event held in Paris. The TENCELTM Luxe branded filament yarn represents Lenzing’s entry in the filament market. This fiber will support the Lenzing Group’s path towards becoming a true specialty player in the market for botanic materials derived from the sustainable raw material wood.

The launch volumes of TENCELTM Luxe are being produced at the Lenzing site. The basic engineering for a commercial scale plant was commenced.

Outlook
Demand development on the global fiber market remains positive within the context of a generally friendly macroeconomic environment. Lenzing expects wood-based cellulose fibers to grow at an even higher rate than the overall fiber market. After three excellent quarters, the Lenzing Group will achieve an operating result in 2017 that is significantly better than 2016.

For 2018, Lenzing sees a number of somewhat opposing factors that limit visibility regarding fiber price developments. Overall market demand is expected to remain high. However, the Group expects a substantial increase on the supply side, especially for viscose but also for cotton. Price trends for selected key raw materials, especially caustic soda, are difficult to predict. Against this background the Lenzing Group expects a much more challenging market environment for standard viscose during the upcoming quarters.

The above-mentioned development reassures the Lenzing Group in its chosen corporate strategy sCore TEN. The Group initiated its transformation from a volume-oriented viscose player to a value-oriented specialty fiber player at the end of 2015, and will continue the disciplined implementation of its business strategy.

 

 

 

 

 

 

 

 

 

 

Reinach, Switzerland, 30 October 2017 - Archroma, a global leader in color and specialty chemicals, today announced its first-ever collaboration with Kathmandu, the well-known New-Zealand born and based outdoor brand. Kathmandu selected Archroma and its EarthColors range of plant-based dyes to create a new capsule collection of the brand’s signature hoodie.

Archroma’s EarthColors range recently came to public attention for being the Gold Winner of the OutDoor Industry Award 2017, Sustainable Innovations category, where Kathmandu also presented their first hoodies just off of the production line. Archroma’s EarthColors is a line of patented plant-based dyes, sourced from up to 100 percent renewable resources. Archroma developed EarthColors using non-edible waste products, from agriculture and herbal industries, to replace petroleum derived raw materials; which are the conventional raw materials used to synthesize dyes currently. This gives brands an alternative when looking for more natural ways of dyeing garments.

Archroma and Kathmandu teamed up to create an exclusive “vintage casual” look.

The colors available in the capsule collection: slate blue, burnt olive and burlwood rose, are made from the non-edible parts of nutshells, almond shells, rosemary, saw palmetto, bitter orange and beetroot, left over from agriculture industry or herbal extraction. The collection is available online at www.kathmandu.com.au.

“We are very proud and grateful that Kathmandu selected Archroma’s EarthColors for their first incursion into the world of nature-based colors,” comments Paul Cowell, Head of Brand Marketing in Archroma’s Brand & Performance Textile Specialties business. “Kathmandu will surely inspire other brands and retailers to explore and adopt eco - advanced innovations. With the help of Kathmandu, Archroma is again showing the apparel industry the way to go, one collection at a time. Because it’s our nature!” “We have been using recycled materials for over 20 years and we are constantly looking for new technologies to develop more sustainable outdoor gear, adds Manu Rastogi, Textile R&D and Responsible Materials Manager for Kathmandu. “Dyeing techniques using plants have been around for centuries, but they require adding huge amounts of mordants* and fixatives**, which could lead to water pollution.

They also tend to have poor light and wash fastness which is undesirable for the consumer and does not promote article longevity. So when we heard about Archroma’s EarthColors, we were immediately excited by what is probably the first technology allowing colors to be synthesized from plants rather than petroleum while keeping similar performance.” Kathmandu selected Archroma and its EarthColors range of plant-based dyes to create a new capsule collection of the brand’s signature hoodie. (Photographs: Kathmandu) Archroma’s EarthColors is a line of patent-pending plant-based dyes, sourced from up to 100 percent renewable resources. (Photo: Archroma)

Kathmandu® Registered trademark
*alum, iron, copper, tin, chrome
** salt, tannings, vinegar

Color Solutions International, a member of the DyStar Group is launching their Color Analysis for Spring/Summer 2019. Color Analysis is CSI’s trend forecasting magazine that provides high-level global color trend information for color managers, directors and designers to support the color palette development process. It contains a forecast of key colors, accents and core neutrals that will be most relevant for the upcoming seasons. The forecast is based on consumer reports, detailed market research, current social trends and generational mindsets. Every issue features an artist who influences and inspires forward thinking.

The magazine includes a seasonal color palette selected from a wide range of approximately 9,000 CSI colors. The color palette is also available as cotton swatches sold on a ring. Part of the CSI service offering is to provide color direction based on a wide scope of palette searches as well as validated color use. Every issue will include an exclusive Relative Color Popularity (RCP) report, which provides color validation based on seasonal color palette usage by comparing similar hues.
CSI and DyStar support brands, retailers and their business partners from development to production. The CSI and DyStar team of experts work together and assist their customers in color development, communication as well as in the dyeing and quality inspection process to achieve best possible results and sustainable fashion. All CSI products are produced with high-quality, eco-friendly DyStar colorants.
“The Color Analysis Magazine is an important feature of our service for designers, offering them competitive color trends for upcoming seasons. At CSI, we are here to assist with color selections and provide all the necessary tools needed for a successful seasonal palette.” -CSI Color and Trend Director.

The session will explore what the digital revolution means for business, and how innovations in manufacturing are the new reality that help create sustainable products that last and can be scaled to suit each actor through smart customization.
IMPRIMA S.p.a. is the global holding company dedicated to research, development and innovation in the textile printing and finishing arena. It is the first Fully Digital Industrial Platform, that today can offer a fully digitalized process in every step of its manufacture. Thanks to the acquisition of 100% of the German finishing and textile printing company KBC and 100% the Italian company GUARISCO by WISE SGR, Imprima is enriched by an international outlook that makes it extremely competitive in the market, which will be reinforced in the coming months with additional acquisitions in Italy and abroad, taking care to maintain best practices in terms of quality and service and the business identity of each company. In this way, Imprima represents a preferred partner for the fashion retailers.
IMPRIMA boasts a Total Water Management guarantee through its own chemical/physical process of water depuration technologies able to reduce the consumption of water up to 90%, avoiding effluents, by circulating it in a virtuous recycling process, for example now needing only 1 liter of water compared to traditionally 12 liters needed in the past.

With digitalization transforming the way consumers shop, today’s fashion companies are playing a neverending game of catch-up, as they compete for the attention of a generation of connected, fickle-minded millennials who want it all: personalization, sustainability, quality and speed, accessible at all times, across multiple channels, and at the lowest price. Industry 4.0 is not only revolutionizing how manufacturers operate, but also how brands and retailers need to function, if they want to be fast and agile enough to meet the needs of this demanding new consumer. The stakes are high and how effectively companies harness technology to put the consumer at the heart of their process will be the deciding factor in who comes out ahead and who gets left behind.

Lectra Fashion PLM 4.0 has undergone a drastic reboot to give fashion and apparel companies the speed and agility they need to tackle the challenges of Industry 4.0 head on. Lectra Fashion PLM 4.0, with the widest functional scope on the market, acts as an intelligent nerve center to the digital supply chain, from planning through design to production. This ensures a consistent flow of error-free data between processes, technologies and people. The system connects CAD, industry-standard software such as Adobe Illustrator, company IT systems (such as ERP) and external suppliers, so that actors across the supply chain can work on, save and share information on the platform, ensuring data integrity.
The solution also draws on best practices, fashion-business intelligence and real-world scenarios to automate administrative and repetitive tasks, with templates, standard libraries and shortcuts that allows more time for value-added activities. The final result is a fast, connected digital supply chain that helps fashion companies jump on trends quickly and deliver products that fulfill their customer’s expectations.